MUMBAI: Buoyed by fresh inflows into debt as well as equity plans, total assets under management (AUM) of mutual funds has surged 15% to touch Rs 14.22 lakh crore in April 2016, according to data released by the industry body AMFI.
While some investors pulled out money from gold ETFs , there were fresh inflows of Rs 170,000 crore into debt and equity categories.
There were inflows of Rs 134,000 crore into liquid and money market funds, Rs 31,448 crore into income funds and Rs 4500 crore into equity funds. There was marginal outflow of Rs 69 cr from gold ETFs.
The sudden rally in stocks in March revived investor confidence with many stepping up equity exposure through systematic investment plan (SIPs) .and small lumpsum investments.
"Money which moved from mutual funds to banking system and subsequently to government taxes came back in April," says Nilesh Shah , Managing Director, Kotak Mutual Fund.
"Many investors believe we are in a low interest rate environment and further rate cuts are expected. Hence we saw a rise in allocation to liquid and income funds," said A Balasubramanian, Chief Executive Officer, Birla Sunlife Mutual Fund.
When interest rates fall, bond prices go up, giving investors capital appreciation on their investment. Also when the economy grows, more upgrades are expected which is likely to increase bond prices.
With Nifty moving up 11%, in March, the sentiment turned positive for equities. Distributors believe many retail investors flocked to equity mutual funds using the SIP route, which led to higher inflows into equity mutual funds. Many investors are also using SIPs to meet their long term financial needs for retirement planning and children's education and wedding.
"Retail investors believe that equity as an asset class will help them beat inflation in the long term. They are nibbling at equities using the SIP route, where we have seen a surge in registrations in April," Sambath Kumar, Head - Distribution, HDFC Securities.
While some investors pulled out money from gold ETFs , there were fresh inflows of Rs 170,000 crore into debt and equity categories.
There were inflows of Rs 134,000 crore into liquid and money market funds, Rs 31,448 crore into income funds and Rs 4500 crore into equity funds. There was marginal outflow of Rs 69 cr from gold ETFs.
The sudden rally in stocks in March revived investor confidence with many stepping up equity exposure through systematic investment plan (SIPs) .and small lumpsum investments.
"Money which moved from mutual funds to banking system and subsequently to government taxes came back in April," says Nilesh Shah , Managing Director, Kotak Mutual Fund.
"Many investors believe we are in a low interest rate environment and further rate cuts are expected. Hence we saw a rise in allocation to liquid and income funds," said A Balasubramanian, Chief Executive Officer, Birla Sunlife Mutual Fund.
When interest rates fall, bond prices go up, giving investors capital appreciation on their investment. Also when the economy grows, more upgrades are expected which is likely to increase bond prices.
With Nifty moving up 11%, in March, the sentiment turned positive for equities. Distributors believe many retail investors flocked to equity mutual funds using the SIP route, which led to higher inflows into equity mutual funds. Many investors are also using SIPs to meet their long term financial needs for retirement planning and children's education and wedding.
"Retail investors believe that equity as an asset class will help them beat inflation in the long term. They are nibbling at equities using the SIP route, where we have seen a surge in registrations in April," Sambath Kumar, Head - Distribution, HDFC Securities.
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